CAMBRIDGE COURT HIGH SCHOOL

Economics Project

TOPIC : Fluctuation in the rates of Gold AND Dollar

DATE : (Started On: 2nd September 2013

Ended On: 11th October 2013)

NAME : LABHESH KHATRI

CLASS : XI-D

Total Expenditure: Rs. 28

Calculation of mean of the prices of

GOLD & DOLLAR

Formula of Mean(X)= ∑ x

N

FOR GOLD

Here, ∑ x= 860200

Frequency (f) =30

X= 86020030 = 28673.33

FOR DOLLAR

Here, ∑ x=1896.46

Frequency (f) =30

X = 1896.4630 = 63.21

Table No. –1

Title - Prices of Gold & Dollar

(Price in Rupees)

Footnote: Some dates have been skipped since on that date the share market is closed.

S.no. Date Gold Dollar1 02-Sep-13 29800 662 03-Sep-13 29800 67.633 04-Sep-13 29800 67.074 05-Sep-13 29100 66.015 06-Sep-13 29800 65.246 09-Sep-13 29000 65.247 10-Sep-13 29000 63.848 11-Sep-13 29000 63.389 12-Sep-13 28900 63.5

10 13-Sep-13 28500 63.4811 16-Sep-13 28400 63.8312 17-Sep-13 28400 63.3713 18-Sep-13 28200 63.3814 19-Sep-13 28700 61.7715 20-Sep-13 28800 62.2316 23-Sep-13 28200 62.617 24-Sep-13 28200 62.7518 25-Sep-13 28500 62.4419 26-Sep-13 28500 62.0720 27-Sep-13 28200 62.5121 30-Sep-13 28900 62.622 01-Oct-13 28400 62.4623 02-Oct-13 28000 62.4624 03-Oct-13 28100 61.7325 04-Oct-13 28200 61.4426 07-Oct-13 28400 61.7927 08-Oct-13 28600 61.7928 09-Oct-13 28700 61.3929 10-Oct-13 28700 61.3930 11-Oct-13 28400 61.07

Total:861200 1896.46

Source: Newspaper AND Television

Experience

During this project I have come to know about many things related to stock market & also I have started understanding the reasons for the change in the rates of DOLLAR & GOLD.

Terms Learned during the project work

1)Bear Market: A market in which stock prices are falling. 2)Beta : A measurement of the relationship between the price of a stock

and the movement of the whole market.3)Basis Point: One-hundredth of a percentage point. For example, the

difference between 5.25% and 5.50% is 25 basis points.4)Bull Market: A market in which stock prices are rising.5)Dividend Payable Date: The date set by the issuer on which the

dividend will be paid.6)Cyclical Stock: A stock of a company in an industry sector that is

particularly sensitive to swings in economic conditions.7)Dividend Record Date: The date on which a security holder must be

registered as a holder of an issue to receive the dividend.8)Equities : Common and preferred stocks, which represent a share in

the ownership of a company.9)Growth Stock: The shares of companies that have enjoyed better-

than-average growth over recent years and are expected to continue their climb.

10) Hedge: A strategy used to limit investment loss by making a transaction that offsets an existing position.

11) Index: A statistical measure of the state of the stock market, based on the performance of stocks.

12) Inflation: An overall increase in prices for goods and services, usually measured by the percentage change in the Consumer Price Index.

13) Initial Public Offering (IPO): A company's first issue of shares to the general public.

14) Investment: The purchase or ownership of a security in order to earn income, capital or both. Investments may also include artwork, antiques and real estate.

15) Junior Corporation: A young company in the early stages of operations and growth.

16) Last Trading Day: The last day on which a futures or option contract may be traded.

17) Low Price: The lowest price at which a board lot trade was executed during a period of time.

18) Market: The place where buyers and sellers meet to exchange goods and services. It also represents the actual or potential demand for a product or service.

19) Market Order: An order to buy or sell stock immediately at the best current price.

20) Minimum Price Fluctuation: The minimum price change or tick on a futures contract.

21) Open Interest: The net open positions of a futures or option contract.

22) Open Order: An order that remains in the system for more than a day. See Good-Till-Cancelled or Good-Till-Date.

23) Par Value: A security's nominal face value.24) Penny Stock: Low-priced speculative issues of stock selling at

less than $1.00 a share.25) Portfolio: Holdings of securities by an individual or institution. A

portfolio may include various types of Securities representing different companies and industry sectors.

PrefacePurpose for making the Project: To know about the fluctuations in the prices of GOLD & DOLLAR.

DATE : (Started On: 2nd September 2013

Ended On: 11th October 2013)

Source: Newspaper AND Television

INDEX

Table for the rates of DOLLAR and GOLD

Calculation of Mean Graph of fluctuations in rates of GOLD Graph of fluctuations in rates of DOLLAR Calculation of Standard deviation and

coefficient of Standard deviation Deviation TableCorrelation Interpretation Reasons for change in rates Experience and new market terms

Table No. –2

Title–Deviation Table

S.no. GOLD dx dx2 DOLLAR dy dy2 dxdy1 29800 1000 1000000 66 3.77 14.2129 3770

2 29800 1000 1000000 67.63 5.4 29.16 5400

3 29800 1000 1000000 67.07 4.84 23.4256 4840

4 29100 300 90000 66.01 3.78 14.2884 1134

5 28800 0 0 65.24 3.01 9.0601 0

6 29000 200 40000 65.24 3.01 9.0601 602

7 29000 200 40000 63.84 1.61 2.5921 322

8 29000 200 40000 63.38 1.15 1.3225 230

9 28900 1100 1210000 63.5 1.27 1.6129 1397

10 28500 -300 90000 63.48 1.25 1.5625 -375

11 28400 -400 160000 63.83 1.6 2.56 -640

12 28400 -400 160000 63.37 1.14 1.2996 -456

13 28200 -600 360000 63.38 1.15 1.3225 -690

14 28700 -100 10000 61.77 -0.46 0.2116 46

15 28800(A) 0 0 62.23(A) 0 0 0

16 28200 -600 360000 62.6 0.37 0.1369 -222

17 28200 -600 360000 62.75 0.52 0.2704 -312

18 28500 -300 90000 62.44 0.21 0.0441 -63

19 28500 -300 90000 62.07 -0.16 0.256 48

20 28200 -600 360000 62.51 0.28 0.784 -168

21 28900 100 10000 62.6 0.37 0.1369 37

22 28400 -400 160000 62.46 0.23 0.0529 -92

23 28000 -800 640000 62.46 0.23 0.0529 -184

24 28100 -700 490000 61.73 -0.5 0.25 350

25 28200 -600 360000 61.44 -0.79 0.6241 474

26 28400 -400 160000 61.79 -0.5 0.25 200

27 28600 -200 40000 61.79 -0.44 0.1936 88

28 28700 -100 10000 61.39 -0.84 0.7056 84

29 28700 -100 10000 61.39 -0.84 0.7056 84

30 28400 -400 160000 61.07 -1.16 1.3456 464

TOTAL 860200 -800 8500000 1896.46 29.5 117.4994 16368

Grafh OF Fluctuation In Rates Of Dollar

FORMULA OF CORRELATION

r =∑ dx .dy−¿¿¿¿

CORRELATION OF GOLD & DOLLAR

⇒r=16368−−800∗29.5

30

√8500000−64000030 √117.4994−870.2530

⇒r = 16368+¿786.66√8478666.67 √88.49

⇒ r = 17154.6627371.014

⇒ r = +0.626

This is a situation of moderate degree of positive correlation between rates of dollar and gold.

(Using Shortcut method)

Calculation of Standard Deviation & Coefficient of Variance

Formula of Standard Deviation σ=√∑ d x2

N−¿¿

FOR GOLDHere, ∑ d x2= 8500000; ∑ dx = -800; N = 30

⇒ σ= √ 850000030−¿¿

⇒ σ= √283333.33−711.11

⇒ σ= √282622.22

⇒ σ= 531.62σ= 531.62X=28673.33

C.V. = σX× 100

⇒ 531.6228673.33

=0.0185

FOR DOLLAR

Here, ∑ d y2= 117.4994; ∑ dy = 29.5; N = 30

⇒ σ= √ 117.499430−¿¿

⇒ σ= √3.916−0.966⇒ σ= √2.95⇒ σ= 1.71σ= 1.71 X=63.21

C.V. = σy

⇒ 1.7163.21

= 0.627

GOLD DOLLAR

Mean 28673.33 63.21

Standard Deviation 531.62 1.71

Coefficient of Standard Deviation

.0185 .0270

Correlation +0.626

INTERPRETATION

Interpreted that if we relate the fluctuations in the rates of dollar and gold than it is moderate degree of positive correlation.

Graph OF Fluctuation In Rates Of Gold